Mark Cuban, Internet entrepreneur and owner of the Dallas Mavericks, was charged with insider trading Monday related to the stock of an online search engine, the Securities and Exchange Commission said.
The SEC alleges that in June 2004, Mamma.com Inc. invited Cuban to participate in a stock offering that would be conducted at a discount to the company's prevailing market price.
Early Monday afternoon Cuban today issued a statement responding to the SEC lawsuit, in which the investor denied any wrongdoing.
"This matter, which has been pending before the Commission for nearly two years, has no merit and is a product of gross abuse of prosecutorial discretion," Cuban said through an attorney. Cuban vowed to contest the allegations "and to demonstrate that the Commission's claims are infected by the misconduct of the staff of its Enforcement Division."
"The government's claims are false and they will be proven to be so," Cuban said, adding that he is "disappointed" that the SEC chose to bring the case.
It's unclear how the civil charges will affect Cuban's ability to continue to participate in the sale of the Chicago Cubs, owned by Tribune Co.